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I am thinking of developing in Guanacaste and need a study of the cost of condos being sold, the cost to build , and how many units are being sold. Also what the future forcast for Condos sales there might be. I have heard that ocean view condos are in over supply and projects are being put on hold. Does anyone know about what is going on?
Thanks RoyWithout a central database of verified sales – there is NO MLS system in Costa Rica – you will only get ‘opinions’ and not facts from people no matter how ‘expert’ they say they are…
Scott Oliver – Founder
WeLoveCostaRica.com
Author of ‘How To Buy Costa Rica Real Estate.’Thanks for the info Scott, It is difficult to get this information I know. What about the second part of my inquiery, whether condos are in over supply or not ?
Regards
RoyNobody is going to tell you this though are they Roy?
A developer who is trying to sell his project will not admit to you, his Realtor or anyone else for that matter that he’s got tons of product for sale…
He’ll tell you that they’re “selling like hotcakes” for sure but not that he’s having trouble giving them away …
Scott
The President of the Costa Rica Construction Chamber might be able to assist; Jaime, can’t remember his last name.
One of my companies is a member (paid membership) of the Camara de Construcion and we can certainly get data on construction permits, increases in materials & labor costs and the number of M2 of new construction but, they can tell you nothing about ‘sales’.
And once again, an organization that relies upon the fees paid by it’s members for it’s own survival is unlikely to be forthcoming about serious problems – which there are not at this time – within it’s industry.
We will certainly report on the fact the constructions starts are down big time, but at the moment that is definitely NOT the case.
Scott Oliver – Founder
WeLoveCostaRica.comWhile doing some research for the Costa Rica Construction Chamber I came across what I thought did not exisit. COSTA RICA MLS….. http://www.mls-cr.com/
I will contact them as well as the construction Chamber. Thanks RoyIt does not exist!
As mentioned previously, there is no USA styled MLS system in Costa Rica.
You will certainly find “multiple listings” of homes for sale on various websites and by the members of this association but, you need to bear in mind that most real estate brokers are NOT members of this association so it is NOT at all a comprehensive MLS system and certainly not the type of MLS system that you may be accustomed to.
The Camara de Construcion is paid membership and one must apply to become a member and be personally interviewed.
Scott Oliver – Founder
WeLoveCostaRica.comMay I just add, the available listing websites only provide available sales and typically will not give you the actual “sold” prices because it’s common practice in CR (although not legal) to record much lower sales prices to pay less taxes on the sale. As you know, you need to have “sold” values to accurately complete an appraisal and then you can use listings and pendings as a back up and to show current market trends. Basically, banks rely on projections based on construction costs (cost approach) and estimates of potential income, but they really cannot substantiate a comparable sales approach except with “inside data” that may not be easily obtainable nor verifiable. There are no real estate appraisers in CR, the people that appraiser residential properties for lending institutions have to be engineers—even if that’s an agronomist (Ingeniero Agronomo)–My last house in CR was appraised by an agronomist from a state bank and he couldn’t even get the dimensions of my octagonal bathroom correct. In another life I was a commercial appraiser (and I currently co-own a residential appraisal firm in NJ)–I’ve always thought that a cohesive MLS system for residential & commercial properties would benefit CR, but when I arrived in 1992, no one was interested in the idea because NO ONE wanted to make sold prices public. I’m sure Scott can guide you with respect to a market analysis that can show you if there seems to be an oversupply of units on the current market, construction costs and what the absorption rates may be considering the current international economic situation, but don’t let anyone tell you they are an appraiser because that’s a foreign concept there. Hope this helps and best of luck with your investment…
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